Project owners would share responsibility for unpaid construction wages

Project owners would share responsibility with contractors for unpaid construction wages. It would cover wages owed to employees of a contractor or any subcontractor for work within the construction contract. Public agencies and certain financial institutions are excluded from the definition of project owner. The rule would not cover workers with a binding union agreement that provides a process to recover unpaid wages and benefits. It would also exclude an owner's principal home, property with five or fewer homes on one tract, and property with one commercial unit. The wage rule would apply to work under contracts entered into on or after the Act's effective date.

Workers or their authorized representatives could sue project owners, contractors, or subcontractors to recover unpaid wages. The claim could be brought by an employee of a contractor or subcontractor, or the employee's authorized representative. Before suing a project owner or contractor, a worker must send both parties written notice by certified mail and give them 21 calendar days to pay. A person doing project work is presumed to be an employee, but a party may show the person is an independent contractor. These wage claim rules would apply to work under contracts entered into on or after the Act's effective date.

The department would fine registered contractors $1,000 for their first and second violations of certificate of fitness rules. The fines apply to violations of certificate of fitness rules. Registration suspension or revocation applies to registered contractors found to have knowingly violated those rules. Other employers could be fined up to $1,000 for violating the chapter or its regulations. A registered contractor's second knowing violation would suspend registration for 90 days, and a third finding of a knowing violation would permanently revoke it. A person would have 30 days after a fine notice to request a hearing in writing. Missing that deadline waives the hearing right and court review.